Personal Finance

Retire at 40, how much CPP will I get?

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  • Aug 31st, 2021 6:08 pm
[OP]
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Dec 31, 2013
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Retire at 40, how much CPP will I get?

I started working in Canada and contributing to CPP in 2014 when I was 28, I am planning to retire in 2025 and by that time I will have a decent 11 years of working. My salary has been around 100,000/year for the past few years, and I expect it to continue to be around that. I heard pension in Canada is great and most of people retire between 45-55.

Should I expect $250 per month starting 2026? I am in Ontario.

Thanks.
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MARKTAMU wrote: I started working in Canada and contributing to CPP in 2014 when I was 28, I am planning to retire in 2025 and by that time I will have a decent 11 years of working. My salary has been around 100,000/year for the past few years, and I expect it to continue to be around that. I heard pension in Canada is great and most of people retire between 45-55.

Should I expect $250 per month starting 2026? I am in Ontario.

Thanks.
WUT??
The Canada Pension Plan (CPP) retirement pension is a monthly, taxable benefit that replaces part of your income when you retire. If you qualify, you’ll receive the CPP retirement pension for the rest of your life. To qualify you must:

be at least 60 years old
have made at least one valid contribution to the CPP
Valid contributions can be either from work you did in Canada, or as the result of receiving credits from a former spouse or former common-law partner at the end of the relationship.
Average Retirement Age In Canada - 65
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Am I the only one who can smell a troll from a mile away?
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epiphano wrote: Am I the only one who can smell a troll from a mile away?
Oh no, this is clearly a troll thread.
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Time to de-rail a troll to a better place.

Mid 30's and planning on retiring at 50. Any good calculators to estimate CPP at 60 or 65 since income from 50 - 60/65 could be pretty small?

Not sure what assumptions the My Individual CRA account makes on future earnings.
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does it matter?
what no down votes? I am not downvoting as usual even if I want to.
Whats with these threads lately? Or was it always like this?
What the heck OP? here since 2013 right? have you checked other threads.
google earliest you can take cpp
Please someone report to mods as they will not lisen to me. as usual .

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If this is not a troll thread and the OP wants to FIRE then this question can get answered here
im-canada-pension-plan-cpp-expert-any-q ... s-1295017/
MARKTAMU wrote: I heard pension in Canada is great and most of people retire between 45-55.
Where did you hear this?
Should I expect $250 per month starting 2026? I am in Ontario.
Expect zero in 2026. Where did you get $250 from?
You can apply when you hit 60 if you meet the qualifications, though the longer you wait the more you will get.
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callernamet wrote: what no down votes? I am not downvoting as usual even if I want to.
Whats with these threads lately? Or was it always like this?
No point in thumb's down for a troll post, just enjoy the ride.

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MARKTAMU wrote: I started working in Canada and contributing to CPP in 2014 when I was 28, I am planning to retire in 2025 and by that time I will have a decent 11 years of working. My salary has been around 100,000/year for the past few years, and I expect it to continue to be around that. I heard pension in Canada is great and most of people retire between 45-55.

Should I expect $250 per month starting 2026? I am in Ontario.

Thanks.
Interesting:

1). you only start working from 28 and plan to retire in 2025 with only 11 year of working history and at $100K annual income???
2). Isn't the estimated CPP you can collect available in Service Canada??
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I will treat this as a serious question. Full CPP requires 39 years of contributions at full YMPE. For someone commencing their pension at age 65 with 39 years of contribution, you are looking at about $1200 per month. 11 year out of 39 means only collecting 28.2% of full pension commencing at age 65. The earliest CPP can commence is age 60 with a 36% reduction in payout. OP you will need to wait to 2046 to collect CPP regardless of when you decide to stop working. With 11 years of full contributions, you should expect 0.282*0.64*$1200=$216. This is not a wage adjusted number. So you are not too far off on the amount, but 2 decades early on commencing the pension. I suggest not counting on CPP for the first 20 years of retirement.
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will888 wrote: I will treat this as a serious question. Full CPP requires 39 years of contributions at full YMPE. For someone commencing their pension at age 65 with 39 years of contribution, you are looking at about $1200 per month. 11 year out of 39 means only collecting 28.2% of full pension commencing at age 65. The earliest CPP can commence is age 60 with a 36% reduction in payout. OP you will need to wait to 2046 to collect CPP regardless of when you decide to stop working. With 11 years of full contributions, you should expect 0.282*0.64*$1200=$216. This is not a wage adjusted number. So you are not too far off on the amount, but 2 decades early on commencing the pension. I suggest not counting on CPP for the first 20 years of retirement.
If someone is depending on that $216 (or even $250) to retire early, I think they need to rethink their retirement plan... :)

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He might pay more on parking charges who knows.
I still cant believe mods have not shutdown this troll thread.
Tried new coffee and doughnut. Found same old stale thing. expected bill of six bucks but it was 600 million. Big mistake so the guy said don't worry it is on the house. going back to McD.
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will888 wrote: I will treat this as a serious question. Full CPP requires 39 years of contributions at full YMPE. For someone commencing their pension at age 65 with 39 years of contribution, you are looking at about $1200 per month. 11 year out of 39 means only collecting 28.2% of full pension commencing at age 65. The earliest CPP can commence is age 60 with a 36% reduction in payout. OP you will need to wait to 2046 to collect CPP regardless of when you decide to stop working. With 11 years of full contributions, you should expect 0.282*0.64*$1200=$216. This is not a wage adjusted number. So you are not too far off on the amount, but 2 decades early on commencing the pension. I suggest not counting on CPP for the first 20 years of retirement.
A very good analysis, except that if someone takes their CPP at age 60 it should be over 35 years (34.8 if you want to be more accurate) instead of 39 years. That means that the equation is really $1,200 x 11/35 x 64% = $241. This formula also only covers the base portion, so the enhanced CPP will probably add another $30 at age 60, making his net CPP approx $271 (in 2021 dollars) at age 60 in 2046.
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OP, the system here enslaves people so they keep working until past 65.

Go look anywhere, you got people who CAN retire, but don't cuz they got no life. No retiring so youngsters can't get in

Perhaps try back home if you can. Here you not going to get anything.

And who knows, will all these pensions and plans and money still be here if WW3 starts? All those govt or private contributions will be wiped off, non-exist.

Enjoy life OP. Retire if you can/want. Maybe back home......take all your money FROM here if possible
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Dogger1953 wrote: A very good analysis, except that if someone takes their CPP at age 60 it should be over 35 years (34.8 if you want to be more accurate) instead of 39 years. That means that the equation is really $1,200 x 11/35 x 64% = $241. This formula also only covers the base portion, so the enhanced CPP will probably add another $30 at age 60, making his net CPP approx $271 (in 2021 dollars) at age 60 in 2046.
You are right, collecting early reduces the 39 year duration. I forgot all about that. I am conditioned by websites using the simple estimate and not accounting for this. These sites also get the deferred pension number wrong for the same reason.
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will888 wrote: I will treat this as a serious question. Full CPP requires 39 years of contributions at full YMPE. For someone commencing their pension at age 65 with 39 years of contribution, you are looking at about $1200 per month. 11 year out of 39 means only collecting 28.2% of full pension commencing at age 65. The earliest CPP can commence is age 60 with a 36% reduction in payout. OP you will need to wait to 2046 to collect CPP regardless of when you decide to stop working. With 11 years of full contributions, you should expect 0.282*0.64*$1200=$216. This is not a wage adjusted number. So you are not too far off on the amount, but 2 decades early on commencing the pension. I suggest not counting on CPP for the first 20 years of retirement.
Could you give a bit more info on that calculation? Looks like .282 is 11 YMPE/39, but what's the 0.64? And is there a good way to build a spreadsheet to incorporate other years of past earnings and plug in estimates for future years?

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